Deadline for 2007 HSA Contribution
Hello,
I was going to do the one-time transfer from TIRA to HSA this year, for a 2007 contribution. However, I find there’s not time enough to ensure it will happen before Aril 15 tax deadline.
I think I recall reading somewhere that deadline can be extended by filing for a tax filing extension (form 4868), so I did. However, I now cannot find that info anywhere. Seems neither the 1040 instructions nor even the IRS Pub 969 for HSAs says diddly squat about the fiing deadline, that I could find…!
Can anyone confirm if the HSA deadline can be extended that way…?
Thanks,
Gerry.
Permalink Submitted by Alan Spross on Wed, 2008-04-09 05:33
Gerry,
Page 7 of Pub 969 indicates that the 2007 contribution must be made by 4/15/08. This is consistent with IRA contributions which also are unaffected by filing an extension.
Your other question about the funding distribution and which year’s HSA contribution is reduced I will get to tomorrow. It is confusing to say the least to be looking to a prior year for one thing and looking forward to see if your transfer will remain valid due to testing, while trying to maintain a certain status of coverage under an HDHP.
Permalink Submitted by [email protected] on Wed, 2008-04-09 18:23
Alan,
Thanks much for your reply. Don’t trouble yourself any further on my account. I’ve decided to forget about it — was only $700 involved anyway (remainder of chach-up), and at this time I likely could not complete the transfer by 4/15.
It was that 4/15 rule about IRAs that alerted me to the problem. Don’t know where I got the idea it would extend along with an extension. Seems this does apply for some contributrions somewhere, but if not for HSAs or IRAs, I dunno where. Maybe I confused it with re-characterizations….
Permalink Submitted by John Keiler on Thu, 2008-04-10 20:45
If you move the [b]maximum for 2007 and maximum for 2008 in one transaction [/b]can it be counted as a one time event even though they both would be done on two different tax forms. I’m 62 now and have a HDHP.
Vanguard will not answer my question because I presume it is taxation advice.
TIA for any responses………Jack
Permalink Submitted by [email protected] on Fri, 2008-04-11 03:09
jj,
With fair warnimg I have no credentials in taxes or IRAs I’ll offer this….
It seems to me you could transfer the total allowance for the two years in a single transaction that occurred in 2008. However, you should carefully check the requirements to see if this is outlawed. I never considered this.
I’m not sure what you mean by “even though they both would be done on two different tax forms”. As the transfer would be done in 2008, there would be no reproting of it to the IRS in 2007 by the transferee, and hence I see no need for mention of it in your 2007 tax filing either. The entire single transfer would be covered in your 2008 filing only. At least, that’s my understanding.
One question: Can you make a contribution in April 2008 based on allowances for May – December coverage by HDHP in 2008? I dunno if you can contribute “ahead” for the entire year in that manner.
In any case, as in my case, its likely too late to complete a transfer by 4/15 starting today… Misss it by a day and you’ll likely have to unwind it….
Permalink Submitted by John Keiler on Fri, 2008-04-11 13:21
In 2007 I am allowed $5650 plus (myself and wife) X $800 = $1600 +$5650 =[b]$7250 for 2007[/b].
In 2008 I am allowed $5800 plus (myself and wife) X $900 = $1800 +$5800 =[b]$7600 for 2008[/b].
Potentially if I am allowed to make once in a lifetime move of IRA to HSA it could be [b]$14850 for years 2007 & 2008 if done before 4/15/07[/b].
This would give me tax free gains on that account until Medicare kicks in at 65.
rggmaki, that is the reason I ask because I still am within the time frame to do a dual contribution as a once in a life time event.
Thanks for your response but hoping someone thats a CPA or tax specialist can answer before 4/14/08
TIA………Jack